The positive outlook on Mibanco reflects that on the Republic of Peru. All things being equal, we would raise the ratings on Mibanco following an upgrade of the sovereign, because the rating on the bank reflects its SACP. Our base-case scenario considers that Mibanco will maintain its risk-adjusted capital at strong levels. Even though the RAC was pressured during 2012 because of higher provisioning and operating expenses, we believe this ratio will be strong (at about 10%) during the next two years, considering its good profitability , reflecting the bank's adequate internal capital generation capacity. We project ROA of about 2% at year-end 2013. We also expect Mibanco to keep taking advantage of its long track record and strong expertise
